People Management and Performance in Contemporary Organisations - Case Study Example

PEOPLE MANAGEMENT & PERFORMANCE IN CONTEMPORARY ORGANISATIONS Pearl and Mutual Benefits Insurance Company falls in the financial sector and in the recent past most graduate trainees about 60% have chosen to leave the organization because of various factors. The company uses a system of recruitment based on the ability of all the candidates.Ordinarilly, the graduate trainees should be knowledgeable on job description and job specification. Recruitment should not only consider the mental ability of the candidate but also his qualification, intelligence to solve problems and learn, interests of jobs, attitudes that emanates from personality. (Harrison, 2002) There is also the need to train the graduate trainees on focusing on the organization so as to maximize the profitability of the firm. The trainees should comprehend the structure and the functionality of the company. (Bloisi, 2003) Ordinarilly,lack of motivation is a major source of employees leaving the company.Normally,when the employees efforts are not recognized this often leads in low morale and employee tends to move to greener pastures i.e. places where their efforts will be motivated 2. Background information Over the past years, many recruits seem not to finish a year in an organization. This trend has persisted making much organization to waste resources which have been endowed to these trained and competent recruits. The departure of these recruits makes the company to remain in the financial constraints. This is because the recruits often leave the insurance company before injecting enough productivity to the company.Ordinarilly, a company will recruit and select go getters who build the customers base so as to ensure that the products are sold. (Mullins, 2007) Pearl and Mutual Benefits insurance company manager recruits 15 to 20 graduate trainees over the past five years to ensure this goal. However, analysis reveals that 60% of the trainees have left the financial sector to industrial sector. Though it is claimed that the selection method involved a well known test of general mental ability and training. There is therefore need to scrutinize the entire recruitment, selection and all the interviews. This will also involve the parameters such as their motivation, reward system and the organization behavior of employees. This report will therefore seek to analyze these parameters. (Mullins, 2007) 3. Findings As it has been seen, 60% of the graduate trainee left the Pearl and Mutual Company which is a financial sector to industrial sector. This has been due to poor motivation and reward system, improper recruitment and selection process and the poor performance appraisal. 4. Analysis It is imperative to understand the selection and recruitment procedures that Pearl and mutual company used. The company uses a system of recruitment based on the ability of all the candidates.Ordinarily, the graduate trainees should be knowledgeable on job description and job specification. Mental ability to do the task without the understanding of what to be done often causes the recruits not to enjoy the job and this will make them not to last at a job place. Recruitment should not only consider the mental ability of the candidate but also his qualification, intelligence to solve problems and learn, interests of jobs, attitudes that emanates from personality. Normally a person with good attitude will seek to cope up with the company’s weakness and behavior. The company should seek people with sufficient communication skills, those who are able to negotiate with the company in times of their needs instead of running away from the company. (Boddy, 2005) Apart from the mentioned person specification, the company ought to make the graduate trainee to understand the terms and conditions of the company. There is need for appropriate selection of rightful candidate. Therefore; quality information should be more emphasized than quantity of information about the graduates. Apart from the drive to achieve, selling skills and interpersonal strength that the company agitates for there is need to select graduates who have passion for the jobs. This will enable them to be retained by fairness and the zeal for work. This will only be driven by fairness and independence during selection. (Bloisi, 2003) 5. Training and development There is need to train the graduate trainees on focusing on the organization so as to maximize the profitability of the firm. The trainees should comprehend the structure and the functionality of the company. The financial trends of the company should be well explained to them. Training is vital for it improves performance and also maintains employee’s motivation. Important virtues such as patience, honesty and hard work should be clarified among the trainees as this will bar them off from terminating the contract abruptly. This trend which has taken root ought to be considered before the situation turns into a disaster. For the training to be effective, it should involve identifying the needs, designing the training, delivering the training and evaluating the training. This will be vital for the efficiency and effectiveness in the training process. (Bloisi, 2003) 6. Leadership and management. Normally, policies that are made by managers may affect the employees especially in issues that concern their inputs.Ordinarilly, managers should have a concern for people and therefore they are mandated not to allow graduate trainees of pearl and mutual insurance companies to leave the company. This can be done by managers ensuring that there are appropriate strategies for retaining employees. (Boddy, 2005) 7. Theory X, Y and Z According to theory Zither management is mandated to promote stable employment, high productivity and high employee morale and sartisfaction.In Pearl and mutual insurance company, most employees do not receive proper morale and satisfaction and this is the reason for them leaving the company. There is no stable promise of permanent employment upon the company. Theory Y explicitly assumes that employees are unmotivated and that they do not like working. The employees are often forced to work, enticed, forced to work. This could be the major reason for the graduates leaving the insurance company to other industries since they dislike the jobs. Theory X on the other hand explains how workers love to work. In the case of pearl and mutual insurance Company, some graduate trainees may love work.However; poor motivation caused them to leave the organization. (Mullins, 2007) 8. Motivation theory Ordinarilly,lack of motivation is a major source of employees leaving the company.Normally,when the employees efforts are not recognized this often leads in low morale and employee tends to move to greener pastures i.e. places where their efforts will be motivated. (Maxwel, 2012) According to Aldermen’s ERG theory of motivation, there are growth needs that involves development of competence and realization of potential, relatedness needs i.e. the satisfactory relations with others individuals and existence needs which concerns the physical well-being. This theory implies that the graduate trainees need resources to meet this need and if at any time the resources seems to be inadequate then the employees will tend to leave the organization in such of higher rewards. (Maxwel, 2012) According to Herzberg theory of motivation there two major factors affecting motivation of workers in the insurance company. The first is the hygiene factors.Ordinarilly, its absence will motivates and its presence has no perceived effect i.e. When you take them away, people become dissatisfied and act to get them back. This includes the decent working conditions, security, pay, benefits, company policies, interpersonal relationships. The second factor is the motivators whose presence motivates. Their absence will not cause dissatisfaction. The withdrawal of hygiene factors in the Pearl and Mutual insurance could have demotivated the employees causing them to leave the organization. Motivation is a key element in the retention of most employees towards the company as it plays part in the retaining of the employees. (Maxwel, 2012) 9. Appraisal Theory Ordinarily, process model of appraisal describes the detail of cognitive operations, mechanisms and dynamics by which the appraisal happens. In other words, the structural model is the static map and the process model is the dynamic operation. The appraisal systems will always recognize individuals and reward them in accordance to their efforts and this often encourages them to be retained. The good appraisal systems consists of the following components that are effective to the organization (Mark, 2014) I. Regular feedbacks: Appraisal systems should be designed in such a manner that they facilitate regular feedback for the employees. To entice good performance from employees, they have to be regularly updated about what is expected of them, what are the things they are doing well and what needs improvement. Such regular feedback aims at continuous all-round development of employees. (Mark, 2014) II. 360 degree feedback: Feedback should not be a one way thing. To be successful as a team, it is important for people to understand and support each other and help them improve. This can only happen if the appraisal system allows for 360 degree feedback. Every employee should get feedback about every aspect that affects work – from supervisors, team mates, subordinates etc. (Mark, 2014) III. Strengths and improvement areas: The appraisal system should be focused on bringing the best out of the employees. The aim should not be just finding out how the employee performed but also what skills helped the performance or what weaknesses affected it. It should be able to clearly list out the strengths of the employee and how it can be put to optimum use. It should also be able to figure out the improvement areas that the employee needs to work on. (Mark, 2014) IV. Support and plan: After identifying the strengths and weaknesses of the employees, the appraisal system should allow for identifying the kind of support that the employee will need to better performance. It should also help create improvement plans for the employees to help them perform their best. For example, it can include identifying weaknesses and suggesting trainings based on them. (Mark, 2014) V. Best fit and compensation: Finally, we come to the traditional roles that an appraisal is supposed to play. The appraisal system should be clearly able to define how the employee performed against a measurable dipstick. Based on this data, an appraisal system should come up with suggestions related to where the employee best fits, does he/she deserves a promotion and the kind of salary hike the person should get (Mark, 2014) There has been shift from the contract of employment to contract of performance.Ordinarilly; managers have concentratedin developing people in most overall performance. Employees who do not have this goal will not manage to be near the company and their fore will often quite as in the case of Pearl and mutual company. The performance appraisal should recognize the individuals based on their input towards the organization. (Anonymous, 2010) For examples, in Honda Motors Company, the graduate trainees are appraised according to the input. This makes them to work hard so as to be compensated according to their efforts. This intern raises the profitability of the company and also contributes to retaining the employees. 10. Organization behavior The behavior of the employees will always contribute to the profitability of the company. The level for the love of job by the employees will also be contributed by the behavior of employees. This behavior s often include attitude that involves competencies and skills, communication levels and other factors that pertains the mind.Generally,moods,attitudes and perception will cause employees to be retained or to leave the organization. Some of the Pearl and Mutual company employees leave the company because of these causes. (Anonymous, 2010) 11. Recommendations For the company to perform well and to retain the employees I recommend that there be a well performance appraisal that is based on the input of output of an individual. This performance appraisal should also have ethical principles that are based on fairness. This will ensure that employees do not leave the organization There should also be motivation upon the Insurance Company. This should be frequent to encourage the graduate trainees to be motivated and this will enable them to like the job therefore to be retained in the company. There is also need to train the graduate trainees on focusing on the organization so as to maximize the profitability of the firm. The trainees should comprehend the structure and the functionality of the company. The financial trends of the company should be well explained to them. Apart from person specification, the company ought to make the graduate trainee to understand the terms and conditions of the company. There is need for appropriate selection of rightful candidate. (Anonymous, 2010) 12. Conclusion In conclusion, it should be noted that when the employees are correctly motivated by being given incentives they will tend to work hard and are often encouraged to love their work therefore frequent self termination of the employment will not be seen. The employees are also to be trained on the need for patience upon organization. The organization should make efforts to employ employees who are qualified and are zealous for the job. References Anonymous. (2010). Appraisal theory. Retrieved 2015, from http://changingminds.org/explanations/theories/appraisal_theory.htm Bloisi, W. (2003). Management and organisational behaviour. Berkshire: McGraw Hill. Boddy, D. (2005). Management an introduction. Essex: Prentice Hall. Harrison, R. (2002). Learning and Development 3 Ed,CIPD. London. Mark, G. (2014, September). Components of an effective appraisal system . Retrieved 2015, from http://info.shine.com/article/components-of-an-effective-appraisal-system/295.html Maxwel, A. (2012). Motivationtheories. Retrieved 2014, from http://www.analytictech.com/mb021/motivation.htm Mullins, L. (2007). Management and organisational Behaviour 8 Ed. Essex: Prentice Hall. Read More